Case Study Of FTSE Bursa Malaysia KLCI Futures

However, In the future the situation for the public Transportation service in Singapore is forecasted to change, if it agrees in moving to the agreements model. It would turn to open up competition for the operating license as quite feasibly to make the tenders available for packets of routes rather than to the entire network, by this means they will be

To calculate the theoretical price of the MMI March ‘86 futures contract, we applied the formula:

Given the background of airline risk exposure and risk management practices, it is apparent that airlines have a variety of options available to minimise fuel price risk. Most of their hedging activity involves over the counter (OTC) instruments which are largely unregulated and difficult to study. Market activity in futures exchanges presents a safer option whose activity is monitored and regulated. The rest of the paper focuses on Southwest Airlines’ hedging activity for the years 2000 – 2014. We look at real life application of futures markets and their products as a risk management technique for a U.S. commercial airline and evaluate whether hedging adds value.

Red Rock Capital’s strategy is to identify major capital flows that manifest themselves as sustainable price trends regularly occurring around the globe. The firm is operated by two people, Tom Rollinger and and Scott Hoffman, both men own 10% or more financial interest in their fund. The two of them are investing their own capital in the fund and they believe that managing money for clients via CTA is an extension of what they are already doing. It proves that they believe in what they are doing and is a good selling point for potential investors. Scott Hoffman started trading futures with Red Rock Capital Management in 2004, since then he has been developing and analyzing sophisticated algorithmic execution models that minimize transaction costs for Red Rock Capital’s quantitative strategies, explaining in part why their management fee is lower than the industry average.

Common themes have emerged from the literature focused on commodities and announcements. The number and significance of macroeconomic announcements on commodity prices is lower than that for U.S. Treasury bonds, exchange rates and equity markets. However, a number of key U.S. indicators, including inflation, GDP and employment statistics, repeatedly show the ability to move some

24. The ________ is a derivative forward contract that was created in the 1990s. It has the same characteristics and documentation requirements as traditional forward contracts except that they are only settled in U.S. dollars and the foreign currency involved in the transaction is not delivered.

Consumer price index is a crucial entity that influences cost of living adjustment. It is responsible in measuring the changes that occur in the price level of the market basket of both consumer goods and services normally purchased by households (Mulvey & Gengler, 2014). Market basket refers to the fixed list of items that is involved in tracking the progress of inflation in a given economy or specific market. Market basket is also regarded as a commodity bundle. Consumer Price Index is dependent of the fluctuations which occur in the prices of the goods specified and involved in market basket (Mulvey & Gengler, 2014). These sample of goods and services are intelligently selected from the market for accurate market judgements when measuring the consumer price index. Normally, the goods involved in these judgmental practices are the frequently bought items and household goods. Close observations are

The management of XYZ Company plans to create and execute contracts with the new client. The management finds it necessary for workers and supervisors to refresh on the basic items and skills of contracts. This will facilitate effective and proper contract execution to the expectations of the client. The terms and skills for contracts will also enable the workers, supervisors and company management abide to the terms and conditions relating to a particular contract in order to avoid breach of a contract. The memo intends to create awareness on the specifications and the needs of the contract between the new client and the company. The memo specifies the expectations of both the company and the client.

In 1984, Financial Accounting Standards no. 80, Accounting for Futures Contracts, also known as FAS 80 had become effective. This document included all hedge accounting practices for entities in the United States. But FAS 80 had several faults. One of its faults was that it was bounded to exchange-traded futures and options and not to over the counter (OTC) derivatives. In 1999, FAS 80 was replaced by Financial Accounting Standards no.133, Accounting for derivative instruments and hedging activities. Despite, the numerous amendments, clarifications and interpretations this document had over the years, it still remains at the core of current derivatives accounting practices. This essay tends to provide a definition of a derivative, its characteristics

Futures market prices depend on a continuous flow of information from around the world and require a high degree of transparency. Factors, such as climatic conditions, political situations, debt

Inflation has been surging in the emerging market world over the past year, driven by a strong run-up in agricultural commodities, thanks to supply shocks paired with the steady increase in demand due to rising wealth in places like the BRIC economies. Inflation will be the key issue in emerging markets in coming year - mostly because of the monetary policy response, and the subsequent impact on GDP, and stock market returns. It is likely that we'll start to see a tapering off of inflation through the second half of this year - but if not, then things could get 'interesting'.

In order to make a decision whether to choose the cash, or index futures alternatives is necessary to compare the costs of both transactions. The main advantage in entering index future contracts instead of selling stocks and buying them back later at a lower price is transaction costs. Transaction costs for establishing and liquidating index futures are much lower than what

Derivatives are financial instruments whose value is derived from the value of something else. They generally take the form of contracts under which the parties agree to payments between them based upon the value of an underlying asset or other data at a particular point in time. The main types of derivatives are futures, forwards, options and swaps.

Abstract This paper summarizes the theoretical and empirical research on how the introduction of derivative securities affects the underlying market. A wide array of theoretical approaches has been applied to the question of how speculative trading, the introduction of futures, or the introduction of options might affect the stability, liquidity and price informativeness of asset markets. In most cases, the resulting models predict that

In this paper the authors examine the relationship between spot market volatility, future trading and options trading. The result obtained suggests that futures trading and options trading are found to affect the spot market volatility but in the reverse direction.